Cyprus Will Be Fifth to Ask for Bailout

In the report, Shiarly said, “As we are in continual discussions with troika team, you appreciate that, as we have maintained throughout the discussion period, we are unable to comment on the recapitalization figures. However, regarding to the government’s overall financing and refinancing until January 2016, we confirm that the said figure is approximately correct.”

While the country actually became the fifth in the region to ask for assistance on June 25, no amount was specified at the time. Help is needed for both the banks and the country’s public sector. Cyprus has also asked Russia to lend it 5 billion euros, and Igor Shuvalov, a first deputy prime minister, said on Sept. 8 that the decision could come within a month.

Shiarly has said that the government also needs 6 billion euros to redeem debt and close a budget gap through 2015. According to the country’s finance ministry, 751 million euros in debt will mature through the end of November. At the end of August, the country had only 492.4 million euros in the bank, and of course it is still obligated for payments each month of salaries, subsidies and social programs. In addition, there is a larger year-end wage payment due in December.